The iShares China Large-Cap ETF (FXI) surged over 5% in pre-market trading on Thursday, riding a wave of optimism surrounding the prospects of China's economic recovery. The rally in Chinese stocks was fueled by expectations that the government's stimulus measures could provide a much-needed boost to the economy in the fourth quarter.
Analysts have expressed confidence that China's economic growth could see some improvement in the final three months of the year, aided by the government's fiscal and monetary policy efforts. The anticipated stimulus blitz has raised hopes that China may achieve its 5% economic growth target for 2024, a milestone that would mark a significant rebound from the recent economic slowdown.
Investors have greeted the potential for an economic revival with enthusiasm, driving up the prices of Chinese equities in the anticipation of improved corporate earnings and financial performance. The FXI ETF, which tracks large-cap Chinese stocks, has been a major beneficiary of this positive sentiment, reflecting the optimism surrounding the country's economic outlook.
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